Rod Drury. Photo / Mark Mitchell
Two American investors have increased their interest in cloud accounting software provider Xero by a total of $82 million, of which $60 million is newly issued capital and $22 million is to purchase shares from its three largest shareholders.
The $22 million is split three ways between director Craig Winkler,
chief executive Rod Drury, and co-founder Hamish Edwards, who will receive around $15 million, $5 million, and $2 million respectively for the sale of portions of their holdings at the transaction price of $6 a share.
At the same time, Peter Thiel-backed Valar Ventures of San Francisco will raise its holding in Xero to 7 per cent from 3.9 per cent, and Massachusetts-based Matrix Capital Management's stake will rise to 9.8 per cent from 1.8 per cent.
Winkler's interest in the fast-growing accounting software developer, which has global ambitions, falls to 15.7 per cent from 19.5 per cent, Drury goes to 18.5 per cent from a 21 per cent holding, and Edward's shareholding reduces to 4.9 per cent from 5.7 per cent.
"The board's decision to increase funding follows the announcement on November 14 that Xero will accelerate its investment in the business to take advantage of market conditions," directors said in a statement to the NZX.
